Shares of Micron Technology tumbled 18 percent Friday, hitting levels not seen in more than a year as demand for PCs continues to fade.
Net income and revenue both fell in the third quarter and the declines were worse than Wall Street had expected.
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Micron was by far the biggest percentage loser on the S&P 500 index and its third-quarter numbers dragged down Sandisk, Intel and Semiconductor Manufacturing International and other chipmakers as well.
On top of missed targets, investors were caught off guard by the company's revenue projections for the current quarter.
Analysts had already been lowering their estimates, but Miron's projection of revenue between $3.45 billion and $3.7 billion for the fourth quarter fell short of even the most pessimistic outlook.
The company's stock slid $4.39 to $19.63 in midday trading. The stock has slumped 31 percent in 2015 and on Friday it fell to $19.43, its lowest price since November 2013.
"Below-seasonal demand for PCs was a much larger drag on Micron's revenue and gross margin than we had estimated," wrote Stifel Nicolaus analyst Kevin Cassidy, who cut his price target to $34 per share from $41.
Cassidy did say that Micron is making the correct strategic move in shifting its business away from chips for PCs.
The Boise, Idaho, company said demand could improve later in 2015.